35 Tax Planning Strategies - Part 4

“Health Savings Act of 2021”

This legislation would simplify and expand Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) to allow American workers to maintain financial control over their health care spending without tax penalties.

However this can also allow Tax deductions? through:?

?

(1) exempts HSAs from creditor claims in bankruptcy

?(2) reauthorizes Medicaid health opportunity accounts.

?

The bill allows a medical care tax deduction for?

(1) exercise equipment, physical fitness programs, and membership at a fitness facility;?

include amounts paid for prescription and over-the-counter medicines or drugs as qualified medical expenses for which distributions from an HSA or other tax-preferred savings accounts may be used

(2) nutritional and dietary supplements; include amounts paid for prescription and over-the-counter medicines or drugs as qualified medical expenses for which distributions from an HSA or other tax-preferred savings accounts may be used ?(purchase herbs, vitamins, minerals, homeopathic remedies, meal replacement products, and other dietary and nutritional supplements.)

(3) periodic fees paid to a primary care physician and amounts paid for pre-paid primary care services.

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